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The effect of vocational employment training on the individual transition rate from unemployment to work

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Author Info
Richardson, Katarina () (IFAU - Insitute for Labour Market Policy Evaluation)
van den Berg, Gerard J. (IFAU - Insitute for Labour Market Policy Evaluation)

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Abstract

Amongst the active labor market policy programs for the unemployed in Sweden, the vocational employment training program is the most ambitious and expensive. We analyze its effect on the individual transition rate from unemployment to employment using a unique set of administrative data and a novel empirical approach that exploits variation in the timing of training and exit to work. The approach involves the estimation of duration models, and it allows us to quantify the individual effect of training in the presence of selectivity on unobservables. The data contain the full population of unemployed in the period 1993-2000 and include multiple unemployment spells for many individuals. The results indicate a significantly positive effect on exit to work after exiting the program. Its magnitude is very large shortly after leaving the course but diminishes afterwards. If we also take account of the time spent in the program then the net effect of participation in the program on the mean unemployment duration is close to zero.

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Publisher Info
Paper provided by IFAU - Institute for Labour Market Policy Evaluation in its series Working Paper Series with number 2002:8.

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Length: 49 pages
Date of creation: 15 Apr 2002
Date of revision:
Publication status: Published in Swedish Economic Policy Review, 2001, pages 177-213.
Handle: RePEc:hhs:ifauwp:2002_008

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Related research
Keywords: Vocational training; program evaluation; duration analysis; Swedish labor market; selectivity bias; treatment effect;

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Find related papers by JEL classification:
I28 - Health, Education, and Welfare - - Education - - - Government Policy
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search
J68 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Public Policy

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  1. David Card & Jochen Kluve & Andrea Weber, 2009. "Active Labor Market Policy Evaluations: A Meta-analysis," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  2. Albrecht, James & van den Berg, Gerard J & Vroman, Susan, 2004. "The knowledge lift: The Swedish adult education program that aimed to eliminate low worker skill levels," Working Paper Series 2004:17, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
    Other versions:
  3. Weber, Andrea & Hofer, Helmut, 2003. "Active Job-search Programs a Promising Tool? A Microeconometric Evaluation for Austria," Economics Series 131, Institute for Advanced Studies. [Downloadable!]
  4. Brian Krogh Graversen & Jan C. van Ours, 2006. "How to Help Unemployed Find Jobs Quickly: Experimental Evidence from a Mandatory Activation Program," IZA Discussion Papers 2504, Institute for the Study of Labor (IZA). [Downloadable!]
  5. Hujer, Reinhard & Thomsen, Stephan L. & Zeiss, Christopher, 2006. "The effects of short-term training measures on the individual unemployment duration in West Germany," ZEW Discussion Papers 06-65, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  6. Krogh Graversen, Brian & van Ours, Jan C, 2007. "How to Help Unemployed Find Jobs Quickly; Experimental Evidence from a Mandatory Activation Program," CEPR Discussion Papers 6057, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  7. Michael Rosholm & Michael Svarer, 2004. "Estimating the Threat Effect of Active Labour Market Programmes," CAM Working Papers 2004-14, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics. [Downloadable!]
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  8. Reinhard Hujer & Stephan Thomsen & Christopher Zeiss, 2006. "The effects of vocational training programmes on the duration of unemployment in Eastern Germany," AStA Advances in Statistical Analysis, Springer, vol. 90(2), pages 299-321, June. [Downloadable!] (restricted)
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  9. Budria, Santiago & Pereira, Pedro T., 2008. "The Contribution of Vocational Training to Employment, Job-Related Skills and Productivity: Evidence from Madeira Island," IZA Discussion Papers 3462, Institute for the Study of Labor (IZA). [Downloadable!]
  10. Fredriksson, Peter & Johansson, Per, 2002. "Program Evaluation and Random Program Starts," Working Paper Series 2003:1, Uppsala University, Department of Economics. [Downloadable!]
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  11. Rosholm, Michael, 2008. "Experimental Evidence on the Nature of the Danish Employment Miracle," IZA Discussion Papers 3620, Institute for the Study of Labor (IZA). [Downloadable!]
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  12. Jaap Abbring & Gerard van den Berg, 2005. "Social experiments and instrumental variables with duration outcomes," IFS Working Papers W05/19, Institute for Fiscal Studies. [Downloadable!]
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  13. Zhang, Tao, 2003. "A Monte Carlo study on non-parametric estimation of duration models with unobserved heterogeneity," Memorandum 25/2003, Oslo University, Department of Economics. [Downloadable!]
  14. Jochen Kluve, 2006. "The Effectiveness of European Active Labor Market Policy," IZA Discussion Papers 2018, Institute for the Study of Labor (IZA). [Downloadable!]
  15. Graversen, Brian Krogh & Ours, Jan C. van, 2006. "How to help unemployed find jobs quickly ; experimental evidence from a mandatory activation program," Discussion Paper 126, Tilburg University, Center for Economic Research. [Downloadable!]
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